China runs massive trade surpluses with North America and Europe. Those markets pay in US Dollars or in Euro. Every day China earns about $2.7 billion USD ...
The idea that they’re forming an alternative USD market also makes sense. A majority of the world holds debt in USD and if they control enough of the supply through their own banks, it’s harder for the US to force a nations hand by forcing them to trade when they can go to China for the same USD loan on better terms.
It also gives them the option of loaning out USD and requesting payment in another currency (either theirs or the domestic currency of the loan holder)
Absolutely, and I think this is why a BRICS currency is inevitable long term. Countries outside US control can’t continue using the dollar because US uses it as a weapon.
The idea that they’re forming an alternative USD market also makes sense. A majority of the world holds debt in USD and if they control enough of the supply through their own banks, it’s harder for the US to force a nations hand by forcing them to trade when they can go to China for the same USD loan on better terms.
It also gives them the option of loaning out USD and requesting payment in another currency (either theirs or the domestic currency of the loan holder)
Absolutely, and I think this is why a BRICS currency is inevitable long term. Countries outside US control can’t continue using the dollar because US uses it as a weapon.
Definitely, it’s ironic that dollarization basically starts with massive adoption of the dollar.
This is like the nation state version of Microsoft’s the E’s
Embrace the dollar
Extend it’s usage in global trade through your own financial instruments
Extinguish the original dollar
lmao
Possibly the only instance of that capitalist process being used for good lol